3. The last step is magic of compounding. You'll often hear phrase, "The rich get richer." While this phrase can mean different things in different situations; in context of compounding it has a major impact. Let me share a few examples on how you can accumulate $1,000,000, based on average investment return of 10% (stock market average).

Let's say you are 40 years old and you have $20,000 to invest. To accumulate $1,000,000 by age of 65, you would need to contribute $567 per month. If you're 30 and have $5,000 to invest, you'll need $218 per month to reach $1,000,000 by age 65. Let's say you are only 20 years old and you have no money to invest. You can start with absolutely $0 and still only have to add $94 per month to reach that same $1,000,000 goal by age 65. Wealthy individuals understand benefits of compounding. Here are examples that show how rich get richer. A. If you have accumulated $10,000 and your investments yield a fantastic 20%, you will have earned $2,000 for that year. B. If you have accumulated $100,000 and your investments don't do as well and you only earn 10%, you still outpace person with only $10,000 and you'll earn $10,000 for year. C. OK, let's say you met your goal of accumulating $1,000,000 and your investments do even worse at 3% for year. You will still make over $30,000 for year. If your investments performed well (10%) you will have made an unbelievable $100,000 for that year.

There it is. The 3-step plan for meeting your own personal wealth accumulation plan. Whether it's $100,000 or $1,000,000; you have potential to attain your personal wealth accumulation goal as long as you have a compelling reason (a true desire), you make right personal choices and you take daily actions towards this goal. Is it easy? - Not necessarily Is it possible? - Absolutely yes!

-------------------------------------------------------------------------------- Take Action Today!! First, set aside 30 minutes or 3 days and create a compelling reason to set your own personal net worth goal. Then, set a specific net worth goal for 3 months, 1 year, 5 years and 10 years. Not sure what your goal should be. It doesn't matter right now. Just set a goal and change it as needed - you'll probably change it upward. Next, take $10 out of your wallet or purse - TODAY - and deposit it into your new "Wealth Accumulation" account. You've just now taken first steps and are now on your way to meeting your goal. You'll be amazed at what you can accomplish!

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To start your wealth building education, there are many great books on specific subject of accumulating wealth and you can search your local library as an inexpensive and resourceful first action step. In addition, check out some of these titles listed below. You can find these titles and many more online at Amazon.com, Books-a-Million or Barnes & Noble.

The Automatic Millionaire, The Finish Rich Workbook, Smart Couples Finish Rich, Smart Women Finish Rich - by David Bach

Multiple Streams of Income, Creating Wealth, One Minute Millionaire - by Robert Allen

Rich Dad Poor Dad, Rich Dads Guide to Investing, Own Your Own Corporation, Rich Dads Retire Young Retire Rich, Real Estate Riches - by Robert Kiyosaki

The Laws of Money, 9 Steps to Financial Freedom, The Road to Wealth, The Courage to be Rich - by Suze Orman

The Truth about Money, Ordinary People Extraordinary Wealth - by Ric Edelman Secrets of Six Figure Women - by Barbara Stanny The Savage Truth on Money - by Terry Savage The Only Investment Guide You'll Ever Need - by Andrew Tobias The Millionaire Next Door, The Millionaire Mind - by Thomas Stanley The Intelligent Investor - by Benjamin Graham

End of Article by Mike Matthews ©2004, MSBJ Holdings LLC

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